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Capital

Usually, cash or other liquid assets that are held or acquired for use as funds. The phrase can be used broadly to refer to all of a company's monetary-valued assets, including its inventory, real estate, and equipment. When it comes to planning a budget, capital refers to cash flow. In general, capital can serve as both a gauge of wealth and a tool for generating more wealth through investments in capital projects or direct investments. Individuals' net worth includes capital and capital assets. Companies have capital structures that include working capital for everyday expenses, equity capital, and loan capital. More specifically, capitals often refers to long-term investments made in a firm and acquired through the issuance of preferred or common shares, the retention of a portion of the company's earnings since its creation, and long-term borrowing.

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